Generally, a financial institution charges a fee to cash negotiable instruments, particularly if the instrument is not drawn upon an account held with the institution. Because of this, many individuals refrain from cashing their negotiable instruments at financial institutions and instead employ negotiable instrument cashing merchants. While negotiable instrument cashing merchants also charge fees, customers may perceive them as superior because they have more convenient hours and provide non-financial secondary services.
Additionally, financial institutions do not gain sufficient benefit from negotiable instrument cashing transactions. Negotiable instrument cashing fees may not provide substantial profit and negotiable instrument cashing customers seldom conduct other business at the institution. What is needed is a system and method for making negotiable instrument cashing transactions worthwhile to both individuals and financial institutions.